Thank you for the detailed answer, are there any other more efficient methods used in other nations but at the same time ensure less scope for corruption? I remembe the CEO of Tonbo Imaging a few years ago saying that a deal for a specific number of thermal devices with the Philippines was concluded in a matter of weeks after winning a tender, whereas a similar deal in India would have taken months or years to conclude, is that another area we need to improve and why do we take so long? I don’t think it can be only funds as even Philippine’s struggles for funds every single year for their defence budget.There is nothing wrong with L1 procurement system per say, without L1 system the scope for corruption increases. let’s say L1 price 100 ₹ and L2 price is 150₹, L2 has more money to spend on lobbying because of the margins built into the quotation price
in DPP 2016, MoD has remedied this scenario by saying if L1 fails to deliver/ sign contract within stipulated time frame, MoD has the option to offer the contract to L2 but at L1 price. as far as I know this scenario is yet to play out in any procurement yet, since this will be applicable to tenders issued after 2016 only.
There is an aspect of procurement that is not talked about by journalists, perhaps for the fear of getting cancelled by those companies. during a tendering process, other parties in the RPQ or tender phase will raise objects about L1, which halts the procurement from going forward. for Ex: Mahindra’s objections stalled LSV procurement process in early days. this is business. swedes stalled VSHORAD procurement.
to counter this delay, the current gov is ensuring the development/certification process private or PSU products of the same category.
this is generic overview, if you want anything specific let me know.